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☆ Investors revive wagers on Bank of Japan policy change
▼ + stars: | 2022-12-08 | by ( Junko Fujita | ) www.reuters.com time to read: +4 min

TOKYO, Dec 8 (Reuters) - Global investors are short-selling Japanese bonds and driving its other market yields higher, reviving bets that the Bank of Japan will need to tweak its ultra-easy monetary policy sooner rather than later. BOJ Governor Haruhiko Kuroda has repeatedly stressed the need to persist with the bank's unique yield-curve-control policy, which makes Japan an outlier among major central banks aggressively tightening policy to combat inflation. Japan swaps vs yieldsKuroda has said policy will not change until the recent cost-push inflation is accompanied by higher growth in wages. "The central bank may tweak its YCC before March. There should be an event weight it doesn’t have at the moment," says Malcolm, while making clear UBS does not expect any policy change for at least another year.

☆ FTSE Russell, Ping An jointly launch China ESG indexes
▼ + stars: | 2022-12-08 | by ( ) www.reuters.com time to read: +3 min

SHANGHAI, Dec 8 (Reuters) - Global index publisher FTSE Russell and Chinese financial conglomerate Ping An announced a partnership on Thursday to promote sustainable investment, launching a series of China indexes integrating environmental, social and government (ESG) considerations. The FTSE Ping An China ESG Index Series, which combines Ping An's China-specific ESG approach into FTSE Russell's China indexes, shows how Chinese and western institutions can join hands in sustainable investment, despite tensions over sensitive areas such as human rights and Communist Party control. The initial index launch will target onshore investors, but the multi-year partnership aims to ultimately serve international investors as well, said FTSE Russell, a unit of London Stock Exchange Group (LSEG.L). "It's really about leveraging the market-specific insights" that Ping An brings, said Helena Fung, Head of Sustainable Investment, APAC at FTSE Russell. In China, however, internet censorship is not factored into ESG considerations by domestic institutions.

☆ HKEX alum helps Macau take micro-step into finance
▼ + stars: | 2022-12-06 | by ( ) www.reuters.com time to read: +2 min

HONG KONG, Dec 6 (Reuters Breakingviews) - Small is beautiful. Hong Kong’s former stock market Chief Executive Charles Li, key driver of the wildly successful bilateral Stock Connect programme between mainland Chinese bourses and Hong Kong, is kickstarting an asset exchange in Macau. Given Li’s experience running Hong Kong Exchanges and Clearing’s (0388.HK) HK$26 trillion ($3.35 trillion) securities market, his entry is a coup for Macau, which is increasingly desperate to diversify beyond gambling into finance. Talk of a yuan-based stock exchange has yet to bear fruit. Macau, which sits outside China’s capital controls like Hong Kong, may want to compete with its neighbour, but it has a long way to go.

☆ Global investors cheer on China reopening hopes
▼ + stars: | 2022-12-05 | by ( Laura He | ) edition.cnn.com time to read: +5 min

Hong Kong CNN Business —Global traders are increasingly feeling more bullish on China, as they bet the country will gradually unwind Covid restrictions following widespread protests. Starting Monday, Shanghai residents will no longer require a negative Covid test result to enter outdoor venues including parks and scenic attractions. “Multiple positive developments alongside a clear path set towards reopening warrant an upgrade and index target increases for China,” its analysts said in a research note on Monday. MSCI China, an index tracking major Chinese stocks available to global investors, will hit the 70 level by the end of 2023, according to Morgan Stanley. The offshore yuan, a key gauge of how international investors think about China, strengthened sharply against the US dollar on Monday.

☆ Morgan Stanley upgrades China stocks as global investors cheer on Covid reopening hopes
▼ + stars: | 2022-12-05 | by ( Laura He | ) edition.cnn.com time to read: +5 min

☆ China's COVID policy is top of mind for investors as unrest rattled markets this week. Here are 5 things they're watching as Beijing signals willingness to loosen some restrictions.
▼ + stars: | 2022-12-03 | by ( Carla Mozée | ) www.businessinsider.com time to read: +6 min

Chinese cities this week loosened COVID restrictions in the wake of mass protests, lifting Chinese stocks. China's top pandemic official this week appeared to signal a softening in the zero-COVID policy but the government has yet to pledge a comprehensive step-down. Retail investors should be prepared to move defensively should Beijing's decisions on zero-COVID policy go against their respective positions, Martin said. Here's what some market experts are looking at as global investors watch for developments surrounding the Chinese government's zero-COVID stance. "You have to understand that nobody has an edge as to predicting China policy anymore.

Funds flowing from banks will allow developers to repay offshore loans and dollar bonds, helping to repair global investors' bruised confidence, two of the sources said. Each of the four banks, Bank of China (601988.SS), China Construction Bank (601939.SS), Industrial and Commercial Bank of China (601398.SS) and Agricultural Bank of China (601288.SS), will pick several developers to fund, the three sources said. The third source said that, while the big four banks preferred fresh lending to go to state-backed developers, they would have to include some private firms, which have a greater need for offshore loans. Chinese banks make offshore loans secured against domestic assets to companies that need foreign funds, but regulatory tightening in the last couple of years to rein in debt-fuelled empire-building by corporates hampered that kind of lending. China's central bank will also offer cheap loans to financial firms to buy bonds issued by property developers, separate sources have told Reuters.

HONG KONG/SHANGHAI/BEIJING, Dec 2 (Reuters) - China has ordered its top four state-owned banks to issue offshore loans to help developers repay overseas debt, three people with knowledge of the matter told Reuters, rolling out its latest support measure for the cash-starved property sector. The regulators have given 'window guidance', or verbal orders that leave no paper trail, to the banks, setting a date of Dec. 10 by which to make the loans secured against domestic assets, two of the sources said. Funds received after the latest step will allow developers to repay offshore loans and dollar bonds in a bid to repair global investors' bruised confidence in the sector, two of the sources said. Each of the four banks, Bank of China (601988.SS), China Construction Bank (601939.SS), Industrial and Commercial Bank of China (601398.SS) and Agricultural Bank of China (601288.SS), will pick several developers to fund, the three sources said. The People's Bank of China, the central bank, and the China Banking and Insurance Regulatory Commission (CBIRC) did not immediately respond to Reuters' requests for comment.

Blackstone (BX.N) limited withdrawals from its $69 billion unlisted REIT on Thursday after redemption requests hit pre-set limits amid investor concerns it was slow to adjust valuations as interest rate surged, a source close to the fund said. The development is yet another reminder of the risks facing not just sectors that are sensitive to higher interest rates but also broader financial markets, which have rallied sharply on hopes that interest rate hikes will slow. "REITS had a fantastic performance for a couple of months but when you have that outperformance, investors don't react to traditional fundamental signals such as rising rates," she said. But in recent weeks expectations have risen that the Fed will "pivot" from aggressive tightening, prompting investors to price in lower peak interest rates. Blackstone has reported a 9.3% year-to-date net return for the REIT, while the publicly traded Dow Jones U.S.

LONDON, Dec 2 (Reuters) - Investors have withdrawn $316 billion from credit funds this year, unwinding all of the previous year's inflows, BofA Global Research said in a note on Friday. In its latest note on fund flows, BofA said equities funds had seen inflows of $207 billion in 2022, below the "euphoric inflows" of the previous year. Equity funds suffered a $14.1 billion outflow in the largest exit in three months, BofA said, citing EPFR data. Cash funds attracted $31.1 billion of inflows and gold funds added $59 million, BofA added. In emerging markets, BofA said bonds had a 15th week of outflows, losing $500 million, while equities attracted $1.1 billion of inflows.

"While we have been cautious, there is an important shift going on with the COVID reopening." The protests were the strongest public defiance during Xi's political career, China analysts said. If protests were to continue, this would add to the risk premium, said Sean Taylor, chief investment officer for Asia-Pacific at DWS Group. Social discontent stemming from the zero-COVID policy added to risks in executing and implementing government policies, said Mark Haefele, global wealth management CIO at UBS in Zurich. We also view China’s sluggish recovery as a risk for the global economy and markets."

☆ FTX remains focus of 'active' investigation, Bahamas attorney general says
▼ + stars: | 2022-11-28 | by ( ) www.reuters.com time to read: +3 min

Nov 27 (Reuters) - Collapsed cryptocurrency exchange FTX remains the subject of "an active and ongoing investigation" by Bahamian authorities, Bahamian Attorney General Ryan Pinder said on Sunday, as he praised the Bahamas' regulatory regime and swiftness with which it responded to the crisis. FTX, which had been among the world's largest cryptocurrency exchanges, is headquartered in the Bahamas. In mid-November, the Royal Bahamas Police said that government investigators in the Bahamas were looking at whether any "criminal misconduct occurred." read more"We are in the early stages of an active and ongoing investigation," Pinder said on Sunday, according to prepared remarks for the speech. Bahamas securities regulators had revoked FTX Digital's license and began involuntary liquidation proceedings the day before the U.S. bankruptcy case kicked off.

☆ China protests have put the pressure on but it doesn't change how we invest, analyst says
▼ + stars: | 2022-11-28 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailChina protests have put the pressure on but it doesn't change how we invest, analyst saysChina protests have put the pressure on but it doesn't change how we invest, Edmund Harriss, CIO at Guinness Global Investors, told CNBC's "Squawk Box Europe."

"Protests are a concern in the short-term," Seema Shah, chief strategist at $500 billion asset manager Principal Global Investors told Reuters, adding that latest events supported the view that winds were changing. "While we have been cautious, there is an important shift going on with the COVID reopening." If protests were to continue, this would add to the risk premium, said Sean Taylor, chief investment officer for Asia-Pacific at DWS Group. "We believe this divergence in view will drive an outperformance in A shares over H shares," Tang said. We also view China’s sluggish recovery as a risk for the global economy and markets."

But you have to go back centuries in some cases to get anything nearly as bad as 2022 for 'safer' sovereign bonds. "2023 will be the year of the bond," claimed Chris Iggo, chair of the AXA IM Investment Institute. "Road to recession - bullish bonds and quality credit," was how SocGen entitled their view. And while stock volatility makes forecasters nervy, there's a clear attraction for long-term funds in seeking both the fixed income as well as the lift to bond funds when sub-par price discounts disappear into maturity for most high-quality names. "Long high quality bonds in the U.S. and Europe seems like an obvious strategy for 2023," said hedge fund manager Stephen Jen at Eurizon SLJ Capital.

☆ Opinion: It's time for African countries to consider a climate tax on exports
▼ + stars: | 2022-11-24 | by ( Adjoa Adjei-Twum | ) edition.cnn.com time to read: +7 min

I welcome progress here, as African nations are bearing the brunt of climate change. It is now time for African nations to levy a climate export tax on commodities, such as cocoa and rubber, to help pay for climate adaptation. Adaptation is all about building resilience and capacity, and I believe our governments, banks, and businesses must also adapt. Additionally, G20 countries are asking their banks to forecast how risky their loans are due to climate change. It is a wake-up call for African governments, banks, institutions, and companies to unite, step up, and adapt to a new climate reality.

☆ Analysis: Investors warm to European corporate bonds after a brutal year
▼ + stars: | 2022-11-23 | by ( Harry Robertson | ) www.reuters.com time to read: +4 min

A net $3.62 billion flowed into BlackRock's exchange-traded products which track investment grade European corporate debt in the 30 days to November 17. This has buoyed government bond prices, pushing their yields down, and boosted riskier assets such as corporate bonds and stocks. The iBoxx euro corporate bond index (.IBBEU003D) has risen almost 4% since hitting an eight-year low in October, although it remains down 13% for the year. Goldman Sachs strategists recently told clients that one- to five-year European corporate bonds are "very attractive". They said they're more appealingly priced than U.S. corporate debt, with many investors overly pessimistic about the outlook for Europe's economy.

But it's much higher compared to the U.S. companies' issuance of $17.3 billion and Europe's $16.4 billion so far. Internally, China has a lower inflation environment and loosening monetary policy, equity market valuation is more resilient," said Mandy Zhu, head of China Global Banking - UBS. OVERSEAS LISTINGS DROPHowever, Chinese companies' listings overseas have dropped sharply this year. The data showed that IPO issuances on the mainland fell just 11%, while Chinese listings in U.S. and Europe slumped 97% and 81%, respectively. She added that a recovery in the U.S. market listings will take a longer time, given the uncertainty over U.S.-China relations.

☆ European markets head for higher open as investors shrug off economic fears
▼ + stars: | 2022-11-22 | by ( Holly Ellyatt | ) www.cnbc.com time to read: 1 min

European markets are heading for a higher open Tuesday as investors in the region appear to shrug off concerns among their U.S. and Asia-Pacific counterparts over China's tightening of Covid restrictions, which are continuing to pressure output. Investors continue to watch economic data closely and assess how it could affect the trajectory of monetary policy from central banks. Global investors have taken some heart from recent, lower-than-expected consumer and wholesale inflation prints in the United States, prompting bets that the Federal Reserve would have to slow its aggressive interest rate hikes.

☆ SEC charges Goldman Sachs Asset Management with not following ESG investments policies
▼ + stars: | 2022-11-22 | by ( Kanishka Singh | ) www.reuters.com time to read: +2 min

WASHINGTON, Nov 22 (Reuters) - The U.S. Securities and Exchange Commission on Tuesday charged Goldman Sachs Asset Management (GS.N) with failing to follow its policies and procedures involving environmental, socially oriented and other investments, and fined the company $4 million. The charges were specifically over "policies and procedures failures involving two mutual funds and one separately managed account strategy marketed as Environmental, Social, and Governance (ESG) investments," the regulatory agency said in a statement. Without admitting or denying the regulator's findings, Goldman Sachs Asset Management agreed to pay the $4 million penalty, the SEC added. "Goldman Sachs Asset Management, L.P. is pleased to have resolved this matter, which addressed historical policies and procedures related to three of the Goldman Sachs Asset Management Fundamental Equity group's investment portfolios," the company said in a separate statement. The SEC found that, from April 2017 until February 2020, the company had several policy and procedure failures involving the ESG research its investment teams used to select and monitor securities.

☆ Morning Bid: Bulls take cover
▼ + stars: | 2022-11-21 | by ( Yantoultra Ngui | ) www.reuters.com time to read: +2 min

We have seen this story before of markets getting ahead of themselves, but the latest China worries are resurfacing just as global investors dial back hopes of an imminent Fed pivot on interest rates. In Europe, ECB policymakers are seen taking an even tougher stance. Three top officials said on Friday that the European Central Bank must raise interest rates high enough to dampen growth as it fights record inflation and it could soon start running down its 5 trillion euro ($5.2 trillion) debt pile. Minutes from the ECB meeting and the Fed this week will provide markets more direction on the outlook for interest rates, while manufacturing and consumer confidence data will give a snapshot of the health of economies. Meanwhile, U.S. President Joe Biden is proving that age is just a number as he turned 80 on Sunday, making him the first octogenarian president in U.S. history.

☆ 100 years of stock-market history show the sell-off is likely only half done, says a 30-year market vet who called the downturn. Here are 3 criteria to watch to know when the worst is over.
▼ + stars: | 2022-11-19 | by ( William Edwards | ) www.businessinsider.com time to read: +7 min

Jon Wolfenbarger thinks stock-market investors are still too optimistic that a bear market bottom is coming sometime in the immediate-to-near future. When bear markets occur when valuations are relatively high, the bear markets tend to drag on longer. The median bear market length during periods of high valuation among those listed above is 17 months, Wolfenbarger said, compared to 13 months when valuations are attractive. Given that the current market sell-off began amid some of the highest valuations in history, Wolfenbarger said he expects the bear market to last 17 months or longer. Wolfenbarger's views in contextIn June, Societe Generale conducted a similar analysis to Wolfenbarger's and looked at bear markets over the last 150 years.

☆ European markets set for modestly higher open as investors assess interest rate path
▼ + stars: | 2022-11-18 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

European markets are set to climb cautiously on Friday as investors continue to assess the trajectory of monetary policy after some tough statements from U.S. Federal Reserve officials. Global markets took some heart from lower-than-expected consumer and wholesale inflation prints last week, prompting bets that the central bank would have to slow its aggressive interest rate hikes. However, St. Louis Fed President James Bullard said Thursday that "the policy rate is not yet in a zone that may be considered sufficiently restrictive." Bullard suggested that the terminal federal funds rate could reach the 5% to 7% range, higher than the market is currently pricing. U.S. stock futures were mixed in early premarket trade as investors weighed the prospect of higher interest rates, and shares in Asia-Pacific were also uncertain, as Japan's core consumer price index for October rose at its fastest annual pace in 40 years.

☆ Global investors are bullish again on China as Beijing switches to damage control
▼ + stars: | 2022-11-17 | by ( Laura He | ) edition.cnn.com time to read: +6 min

A key index of Chinese stocks in New York jumped 15% during the same period. Some investment banks even upgraded their China growth forecasts following the policy changes. They want to correct the market’s perception of China’s economic outlook, as President Xi Jinping interacts with global leaders at G20,” it said. “I don’t think the long-term appetite for China and Hong Kong shares will return so quickly. The Nasdaq Golden China Index, a popular index tracking Chinese companies in New York, has plunged more than 33% so far in 2022.

☆ In China's property crisis, global asset managers see opportunity in rental housing
▼ + stars: | 2022-11-16 | by ( Clare Jim | ) www.reuters.com time to read: +4 min

The state push is also backed by potentially lucrative returns - depending on the business model, returns on rental housing projects could be between high single digit and high teens. According to consulting firm Frost & Sullivan, the size of the rental housing market in China is expected to increase to 2.7 trillion yuan ($372.25 billion) by 2026, after rising to 1.8 trillion yuan in 2021 from 1.2 trillion yuan in 2017. Warburg Pincus also sees more opportunities in the rental housing because of increasingly attractive asset prices and less competition from cash-strapped local developers. As part of that, regulators have asked trust companies to provide financing to developers for rental housing construction and acquisitions. Across cycles, investment demand may have been affected but not overall housing demand," said Warburg Pincus' Zhang.

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